China and UK agree terms of currency swap

Deal signed for a Rmb200 billion three‑year currency swap. Analysts say swap line will help stabilise redback liquidity in the UK.

The Bank of England said on Saturday that it had agreed the terms of a Rmb200 billion currency swap with the People’s Bank of China, another step in the internationalisation of the renminbi.

The deal furthers London’s efforts to become a fully-fledged offshore renminbi-trading centre, such as Taiwan and Singapore. It also shows China is continuing its policy of opening up, despite its economic slowdown and a credit crunch in its banking sector.